Deutsche Bank Says ‘Don’t Panic’ on Brazil Banks Asset Quality

Brazilian banks’ deteriorating asset quality is already reflected in share-price declines and the industry may outperform when inflation expectations improve, Deutsche Bank AG said.

Brazilian financial stocks’ “steep discount” to Latin American peers is “unjustified,” Mario Pierry, an analyst at Deutsche Bank, wrote in a note to clients.

“Don’t panic over asset quality,” Pierry said in the note.

To contact the reporter on this story: Alexander Cuadros in Sao Paulo at acuadros@bloomberg.net

To contact the editor responsible for this story: David Papadopoulos at papadopoulous@bloomberg.net

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